An analysis shows that Cardano’s trading volume has recovered 33.45% from its lowest point in the past 12 months. Meanwhile, as of May 22, trading volume hit a three-month high.

• Despite the recent market slowdown, Cardano sees hope for recovery in trading indicators.

• ADA is seeing some demand from retail buyers, but whales are still on the bench.

Every once in a while, the crypto market experiences a significant slowdown and relative stagnation, which is the case in the current situation. However, in this case, it is important to understand which networks are still achieving healthy growth, and Cardano [ADA] is currently among them.

According to a recent IntoTheBlock analysis, Cardano’s transaction data shows healthy growth, highlighting the current state of the network. The analysis shows that transaction count and volume are the main areas of note.

IntoTheBlock analysis shows that Cardano’s trading volume has recovered 33.45% from its lowest point in the past 12 months. At the same time, trading volume reached a three-month high at the time of the research.

Cardano’s trading volume has also rebounded sharply from its 2022 lows. For perspective, ADA’s trading volume is up around 205% year-to-date.

This impressive performance highlights the fact that the network has continued to gain widespread adoption despite challenging market conditions. Cardano is expected to maintain positive growth, thanks in large part to the network’s layer 2 scalability network called Hydra.

Will ADA capitalize on Cardano’s growing utility?

ADA’s performance so far has been primarily influenced by overall market conditions. Its performance suggests that it remains correlated with Bitcoin. However, it is still trading at a premium compared to its 2022 lows at the time of writing. Recent performance has attracted a lot of demand, but recent analysis shows that this is mainly from retail traders. So, what are the whales up to? Since mid-May, the largest category of whales (addresses holding between 10 million and 100 million ADA) have slashed their holdings significantly.

This means that they are creating selling pressure, as is the case with the second largest category of whales (100,000 to 10 million ADA).

Supply distribution explains the short-term results and why ADA has been struggling to rebound. The Cardano network has also seen an overall decline in development activity over the past two weeks.

This could also lead to low investor sentiment. In addition, ADA’s trading volume fell to its lowest point in the past 4 weeks.

While ADA’s volumes are gradually recovering, there is still a lot of room for improvement. ADA is changing hands at $0.36 and has been struggling to overcome its range-bound price action supported by low volatility.